cause Archives - Groupfinity

What every nonprofit leader should know about nonprofit fundraising compliance when their fundraising solicitations cross state lines with Ashleigh Allione and Cristina Vessels from Venable LLP

#017 – Today’s interview is with Ashleigh Allione and Cristina Vessels, two lawyers from Venable LLP’s Nonprofit Practice. Ashleigh and Cristina advise nonprofit clients on all aspects of fundraising-related matters, including those stemming from the federal tax laws and states’ charitable solicitation laws. They are here today to talk to us about what nonprofits should know about state charitable solicitation compliance and how to navigate these rules.

A lot of groups assume they are exempt, but that may not be the case. Each case is different. Exemptions depend on the type of organization and type of activity. You need to check on your individual situation.

Some organizations try to handle this on their own. It can be a little tricky, however, so it is good to know professionals that can help us when we need it.

You can find them at venable.com

Apple | Google | Spotify | Stitcher

Resources

Ashleigh Allione, Esq. Bio

Cristina Vessels, Esq. Bio

Fundraising in a virtual world during COVID-19

Does my nonprofit really have to register before asking for money?

Avoiding Fundraising Pitfalls: Keeping Your Nonprofit Compliant When Working with Paid Fundraising Professionals

NOLO – Nonprofits

4 Key Takeaways

#1 If you solicit funds outside of your state, you may need to register in those states;

#2 You need to dedicated someone to this so you don’t miss anything;

#3 Late compliance is better than NO compliance; AND

#4 Once you register in a state, continue to report annually – don’t turn it off and on.

Show Notes

**Click the time stamp to jump directly to that point in the episode

[2:40] 40 states have charitable solicitation laws.
[3:20] Each state has base line ground rules.
[4:00] What is a solicitation?
[4:50] Registration is mostly required before solicitation occurs.
[5:20] Who do I register with?
[7:27] You should register in the state where you are formed.
[9:48] The solicitation is regulated, NOT the receipt.
[10:27] The Charleston Principle.
[12:10] Analysis to figure out if you need to register with certain states due to online solicitation.
[17:50] How do people keep track of all of this?
[18:50] You need 1 person dedicated to tracking compliance.
[19:45] There might be an exemption based on the nature of the organization or nature of activities.
[22:00] How do I determine if I need to do an analysis on a particular state?
[25:40] School may be exempt.
[27:15] NOLO series.
[28:20] What happens if you fail to register?
[31:22] Regulators may take your organization's size into consideration if found to be out of compliance.
[32:20] Late compliance is better than no compliance at all.
[33:20] What does registration look like?
[34:24] Not overly complicated.
[35:38] You should be mindful of your fundraising and of these laws.
[37:33] Do I need to be registered nationwide?
[38:50] There should be a balance with practical considerations.
[42:00] Once you register, you have an obligation to continue.
[42:27] Turning it off and on every year is NOT practical.

What every small nonprofit leader should know about keeping their organization in compliance and in good standing. Nonprofit lawyer Ellis Carter teaches us how to do just that.

#015 – Ellis is a nonprofit lawyer. She started the Charity Lawyer Blog to help nonprofits make sense of compliance and legal matters. Her motto is Nonprofit Law Simplified and that’s just what she did in this interview.

She simplified a number of nonprofit legal and compliance requirements that a lot of small groups struggle with.

We talk about compliance requirements around:

-getting your 501c3 started;

-how to register with your state; AND

-what you need to do every year going forward to stay in compliance.

We also talked a good deal about when it makes sense to get a fiscal sponsor.

Be sure to check out her website to access her registration guide, which is summarized by state.

Apple | Google | Spotify | Stitcher

Resources

Caritas Law Group

Charity Lawyer Blog

How to start a nonprofi t

Charitable Solicitation Registration by State

Charitable Solicitation and Professional Fundraiser Registration

4 Key Takeaways

#1 Many groups misinterpret registration exemptions;

#2 There are filing requirements for almost all organizations, even if you have no revenue;

#3 Just because you are a nonprofit does not mean you are tax exempt; AND

#4 Small groups that intend on getting government grants, may consider getting a financial sponsor.

Show Notes

**Click the time stamp to jump directly to that point in the episode

[2:50] If you do not file for 3 years, your status will be revoked.
[3:22] Once you start soliciting funds in other states, you could trigger registration in those states.
[3:46] Compliance issues may arise if you hire people.
[4:55] Many groups misinterpret the registration exemptions.
[6:00] You have to apply to the IRS for tax exemption.
[7:05] You must register in your state of domicile.
[7:25] What if you're a chapter?
[8:38] Group exemption.
[10:10] Nonprofit vs Tax Exempt.
[12:12] Is it easy to get re-instated your status is revoked?
[12:50] Everyone needs to file, even if you have no revenue.
[15:35] Can just start over with a new name?
[17:28] Is Fiscal Sponsorship right for my organization?
[24:38] Legal checkup.
[25:08] Messy compliance can be a smoke screen for fraud.
[26:03] Small groups that intend on getting government money should consider getting a Financial Sponsor.
[28:40] Board needs to look for red flags.
[29:20] Why Ellis started the Charity Lawyer Blog

How to create an effective nonprofit marketing plan that speaks to your members and donors and gets them to engage more. Marketing Activist Lindsay Lashell tells us what works and what does not.

#014 – Lindsay LaShell is a self described “marketing activist”. Her mission is to help organizations increase justice, equity, and sustainability by making their marketing more effective.

Lindsay shares with us how important it is to be clear on what our audience wants from us and deliver that.

It is ok for there to be a whole bunch of people who are NOT your people. Any marketing strategy that is set up to say we don’t want to alienate anybody, is going to do a terrible job of connecting with the right people.

Lindsay is running a Pro Bono Marketing Bootcamp in December. If your organization’s budget was less than $200k in 2019, you are welcome to apply and snag a free spot.

Apple | Google | Spotify | Stitcher

Resources

Diamond and Branch

Marketing Bootcamp

Trello

5 Key Takeaways

#1 A marketing plan is vital because it lets you know where you’re making the most impact;

#2 Your easiest donor is an existing donor and your 2nd easiest donor is a referral from an existing donor;

#3 If you truly believe the thing you are doing is valuable, you should have no problem offering new people (eg new members & donors) a unique way to get involved;

#4 Put your people at the center of everything you do; AND

#5 If you understand your people correctly, they will connect to your messaging.

Show Notes

**Click the time stamp to jump directly to that point in the episode

[2:30] A marketing plan will allow for consistency and efficiency.
[2:54] Who do we need to talk to? Where do we need to talk to them? What do they need to hear from us?
[3:32] The marketing plan tells you where you're making the most impact.
[4:13] Does that 1 tweet a day help you?
[4:47] We click and engage with the things that are most meaningful to us.
[4:55] Don't blame users for not engaging with your content.
[7:08] Put them at the center.
[7:25] Consider their journey.
[8:20] What do they care about? Why should they care about your organization?
[8:45] What language do they use to recommend you?
[10:04] You're competing with other interests, including Netflix.
[10:43] Be a flywheel vs a skateboard.
[12:25] Your campaign would be more effective if it kept your donors' attention all year long.
[12:45] Communication depends on your audience.
[14:27] Newsletters are good if you are super clear on what your audience wants from it.
[15:06] Good marketers empathize with their audience.
[17:00] You need to know who you're NOT for to know who you are for.
[18:40] Get within 1 degree of the people who can help you on social media.
[22:56] Brand Pillars.
[24:46] If you ask someone for their impression of your organization, what will they say?
[25:15] If you understand your people correctly, they will connect to your message.
[25:50] How to figure our your brand pillars.
[28:30] Should we focus on getting referrals?
[29:40] Your 2nd easiest donor is referral from an existing donor.
[30:35] If you believe the thing you're doing is valuable, you're offering them a unique way to get involved.
[31:53] Pro Bono Marketing Bootcamp

BE AN INSIDER

Join the community

What every nonprofit leader should know about nonprofit fundraising compliance when their fundraising solicitations cross state lines with Ashleigh Allione and Cristina Vessels from Venable LLP

Subscribe

Resources

4 Key Takeaways

Show Notes

Subscribe

What every small nonprofit leader should know about keeping their organization in compliance and in good standing. Nonprofit lawyer Ellis Carter teaches us how to do just that.

Subscribe

Resources

4 Key Takeaways

Show Notes

Subscribe

How to create an effective nonprofit marketing plan that speaks to your members and donors and gets them to engage more. Marketing Activist Lindsay Lashell tells us what works and what does not.

Subscribe

Resources

5 Key Takeaways

Show Notes

Subscribe

BE AN INSIDER

Join the community